The market value of equity of manufacturing companies during the COVID-19 pandemic

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The market value of a public company reflects the expectations of investors. It is influenced by many factors, both internal and external to the company. This study aims to analyze whether intellectual capital moderates the effect of the debt-to-equity ratio and earnings per share on the market value of equity. A set of historical data was collected and analyzed based on a sample of 114 manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2019. This study uses moderated regression analysis to test proposed hypotheses and a robustness test to examine the sensitivity and consistency of the study results. The findings show that the debt to equity ratio affects the market value of equity, whilst earnings per share does not affect the market value of equity. The analysis also shows that intellectual capital could strengthen the effect of the debt to equity ratio on the market value of equity. In contrast, intellectual capital could not strengthen the effect of earnings per share on the market value of equity.

Acknowledgments
The study was conducted with the support of the Universitas Riau, Indonesia.

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    • Table 1. Identification and measurement of variables
    • Table 2. Descriptive statistics of variables
    • Table 3. Correlation matrix of variables
    • Table 4. Moderation regression analysis test result
    • Table 5. Robustness test results
    • Conceptualization
      Enni Savitri, Tatang Ary Gumanti
    • Data curation
      Enni Savitri, Tatang Ary Gumanti, Nik Herda Nik Abdullah
    • Formal Analysis
      Enni Savitri, Tatang Ary Gumanti, Almasdi Syahza, Nik Herda Nik Abdullah
    • Funding acquisition
      Enni Savitri, Almasdi Syahza
    • Investigation
      Enni Savitri, Tatang Ary Gumanti, Nik Herda Nik Abdullah
    • Methodology
      Enni Savitri, Tatang Ary Gumanti, Almasdi Syahza, Nik Herda Nik Abdullah
    • Project administration
      Enni Savitri, Almasdi Syahza
    • Supervision
      Enni Savitri, Tatang Ary Gumanti, Nik Herda Nik Abdullah
    • Writing – original draft
      Enni Savitri, Tatang Ary Gumanti, Almasdi Syahza, Nik Herda Nik Abdullah
    • Writing – review & editing
      Tatang Ary Gumanti, Nik Herda Nik Abdullah
    • Validation
      Almasdi Syahza
    • Visualization
      Almasdi Syahza